New Delhi: ONGC Videsh Ltd beat arch rival China to launch a takeover bid for UK-listed Imperial Energy at £1.4 billion that equals $2.58 billion.
OVL, drubbed by Chinese companies on many occasions in the past, won the approval of Imperial’s Board of Directors for taking over the Russia- focused company for 1,250 pence per share.
“Imperial Energy’s Directors intend unanimously to recommend shareholders accept the proposed offer,” Imperial Energy Executive Chairman Peter Levine said in a regulatory filing to the London Stock Exchange.
OVL managing director R S Butola said: “We believe OVL’s financial strength and technical expertise will further enhance the attractive growth potential of the business in the Tomsk region through the acquisition.”
Imperial, a relatively small British oil and gas company based in Leeds in UK, has oil producing blocks in Tomsk region of western Siberia in Russia and Kastanai in north-central Kazakhstan. It produced about 10,000 barrels of oil per day in December 2007 and is targeting to raise this to 80,000 barrels per day which makes it to 4 million tons a year by the end of 2011.
The Russian Ministry of Natural Resources said Imperial’s Russian Registered Reserves amount to about 450 million barrels of hydrocarbons. Independent assessment of the reserves by DeGolyer and McNaughton in December 2007 suggested in-place reserves of 920 million barrels of oil equivalent.